Advantages And Disadvantages Of Co-Operations Between Hong Kong And Mainland China

HTC will face fewer barriers when its new products entering Chinese market since they are a Taiwan based company.

What is the reasoning behind the large amount of affiliates in China and Hong Kong?

The legal system is another issue to be considered when doing business in China because it is still viewed as being in a developing stage. Contracts, for example, are highly influenced by this difference. In the Chinese culture, contracts describe how relationships will be developed whereas in the United States, the contract is a binding agreement that spells out the specific terms, conditions and expectations from each party involved. As Company X pursues the possibility of expanding business to China, it must understand that the Chinese business culture does not place as much emphasis on the binding force of a written contract.

We have selected Huawei Technologies Company Limited for our MIS project. We selected Huawei Technologies Company Limited because this is a Chinese company .At first we selected Citycell (Telecom Operator), but when we visited City cell we learnt that City-cell is now using Huawei product, and Huawei is a Chinese company. We know about the quality of Chinese product. Most of the Chinese product can not make people happy or satisfied. But we found that Huawei now is one of the top positions in the world. This inspired us about the Huawei.

My strategy will also encompass a way to build trust among the companies. The first thing would be to have Wyoff look at their technology licensing. I would ask for them to offer their technology license at a reduced rate to China-LuQuan as a gesture of trust and friendship. Wyoff also must be made aware of the culture in China and the need for partners to also be friendly. China-LuQuan would need to look at the product slate and become more open to a wider range of products which would show compromise on their part. With the issue of the Chinese people and employees again culture will play a role. Each of the companies must give in somewhat to achieve an agreement on each side. Possibly a 10% immediate reduction in staff and the remainder of the reduction over two years. The management could also be made up of members equally from both companies. The percentage of ownership should also be examined and a 50-50 ownership should be developed as a move in the right direction to doing business in China. Cultural differences play a very big role when looking at China and the United States. China needs to understand Wyoff’s all business attitude and younger negotiators and Wyoff needs to understand the importance of elders and their knowledge along with concerns regarding

ECL is a multi-national corporation that continues to expand its core business as well as create opportunities for foreign divisions to influence the direction of the company in addition to bringing cohesion and unity throughout the workforce. ECL developed a division in China that allowed the company to integrate into the Chinese market but also presented it with issues it would need to manage successfully in order to progress in this venture.

This paper aims to explore the cultural barriers that GM encounters while doing business in China especially in terms of language and Asian mind difference. As a matter of fact, we cannot examine all the cultural barriers due to the scope of the paper. On the other hand, some differences emerging from different thinking behavior between US and China are exemplified in the second part of the paper. In the first part, the company information and the SWOT analysis of GM are given before going further with the Asian operations of the company.

With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.

There is also the chance to join with other companies such as the cooperation opportunity with 3M. The 3M proposition definitely is a value added advantage to Yunnan Baiyao as it will be able to leverage off 3M’s global presence and expertise that it lacks. Being associated with a reputable American company may also provide easier access through the regulatory barrier.

Fock, H K. Y. and Woo. K.S. (1998). The China Market: Strategic Implications of Guanxi. Business Strategy Review, 9(3):

The situation for new entrants was very complex in china; acquisition of cities took much longer than in developed countries. Starting a new business in china was not a rapid process. Making relationships between channels was a slow process, because manufacturers, distributors, and other actors preferred to negotiate with people who they knew before, in china personal relationships are quite important in businesses. Some factors that influenced this process were

John Peter, a Marketing Manager of Hewlett-Packard Asia Pacific (HPAP) was evaluating HPAP’s long-term strategic investment options for doing business in Vietnam. Before start up business in Vietnam, John needs to know the current business environment in Vietnam. History, Economic and Politic Environment are important to know about the country whether is stable from others control. Current workforce is important to find the skillful employee when it’s start up the factory in Vietnam. Foreign exchange and investment regulations are also important to know whether Vietnam market was open to global market or not. Hence, facility in Vietnam such as financial services, communicate services,

India was lucrative since the Indian handheld market is booming and slowly becoming one of the world’s biggest and fasted growing markets. There being a lack of certain technology, gives HTC the opportunities to fill new market gaps. The company’s products are standardized for the global market, while strategies are adapted to respected countries. HTC seems to be efficiency seeking when looking especially at the Indian market. HTC is selling phones globally and in India they are trying to succeed through International Specialization. The company was benefiting at first, from the lack of top of the line mobile phones in the Indian market. Its future strategy is to keep this trend going. The company is trying to take over the top and middle class mobile phone market in India by being the first to offer the latest and greatest technology available and ignoring the lower class mobile market. It managed to do so already by introducing the first fully touch phone and fully Android powered phone.

Facing the China’s Telecom Equipment industry double-digit grow and becoming the largest telecom market in the world, all leading firms in each subsectors of Global telecom equipment take this opportunity to invest in china. Huawei, a Chinese challenge, was starting its challenge to Cisco insurmountable leadership position in international telecom equipment industry.

The number of 3G-subscribers rose enormously up to 3.05 million, which with no doubt was due to the launch of "FOMA" and the new 900i-handsets. The company even prognoses this figure to reach 10.6 million by 2005 whereas the 2G-subscriber number should go down by 13.5% to 37.1 million. The net profit more than tripled in the past fiscal year to 4.9 million